Key facts
- UK consumer confidence rose for the fourth consecutive month in August.
- The GfK consumer confidence index increased to -14, up three points from the previous month.
- Confidence has been on an upward trend since May.
- Sentiment regarding personal financial situations over the next 12 months scored +4.
- Confidence in making major purchases also improved.
- Inflation has risen to 2.9%, the highest in four months.
Consumer confidence in the UK has seen a sustained increase, rising for the fourth consecutive month in August to a score of -14 on the GfK index. This upward trend, which began in May, suggests a potential positive reception to the government's initiatives aimed at addressing the cost of living crisis.
Neil Bellamy, insights director at GfK, noted that the improved sentiment might reflect greater public faith in Chancellor John Healey and Andy Burnham. However, he cautioned that it is premature to definitively assess the trajectory of confidence levels, citing ongoing challenges such as rising inflation, currently at 2.9%, and global uncertainties.
The survey of approximately 2,000 individuals revealed that respondents expressed the most optimism regarding their personal financial situations over the next 12 months, with a score of +4, contrasting with a score of -23 for the general economic outlook. Additionally, consumers showed increased confidence in their willingness to make significant purchases.
Similar positive trends in consumer confidence were observed by the British Retail Consortium. Helen Dickinson, its chief executive, attributed the current sentiment to a "honeymoon boost driven by less pessimism about the outlook." She emphasized that the upcoming budget will be crucial, particularly concerning the government's commitment to reducing business costs, such as energy bills and business rates, which could directly benefit households.